HOUSTON – Halliburton Co. and Baker Hughes Inc. have announced a definitive agreement under which Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction.
The transaction is valued at $78.62 per Baker Hughes share, representing an equity value of $34.6 billion and enterprise value of $38.0 billion, based on Halliburton’s closing price on Nov. 12, 2014.
Upon completion, Baker Hughes stockholders will own about 36% of the combined company. The agreement has been unanimously approved by both companies’ boards of directors.
Subject to approvals from each company’s stockholders, regulatory approvals and customary closing conditions, the transaction is expected to close in the second half of 2015.
The combined company will maintain the Halliburton name. Dave Lesar will continue as chairman and CEO. Following the completion of the transaction, the combined company’s board of directors is expected to expand to 15 members, three of whom will come from the board of Baker Hughes.